According to data released by the Brazilian Automobile Industry Association recently, in August 2014, the auto market in Brazil fell by more than 17%, and fell for 6 consecutive months in the first eight months. China Chery Automobile's local sales have recovered, and the first eight months have almost reached 1.5 times the same period of last year.
Brazil's auto market is sluggish According to data from the Federao Nacional dos Distribuidores de VeÃculos Automotores (Fenabrave), including heavy trucks and buses, Brazil’s total sales in August were 272,495 units, compared to 329,175 in August 2013. The number of vehicles dropped by 17.2% year-on-year.
Brazil's August 2014 light vehicle sales were 259,152 units. In August 2013, sales of light vehicles were 312,688 units, down 17.1% year-on-year. Sales volume of heavy-duty trucks and passenger cars dropped by 19.1% year-on-year to 13,343 vehicles from 16,487 vehicles.
Among the light-duty vehicles, sales of passenger cars dropped by 20.1% year-on-year to 193,146 units from 241,681 units. Sales of light commercial vehicles fell by 7% from 71,007 units year-on-year. 0 to 66.006 vehicles.
In January 2014, the auto market in Brazil ended its consecutive fall since October last year, and double-digit year-on-year growth in February. Since March, the auto market in Brazil has experienced a further decline in sales, and it has fallen for six months in August.
From January to August, the cumulative total sales volume of the Brazilian automobile market was 2,230,126 units, which was a year-on-year decrease of 9.7% compared to 2,470,421 units in the same period of last year. The cumulative sales of light vehicles fell from 2,344,386 vehicles to 2,121,543 vehicles, down 9.5% year-on-year; heavy vehicles from 126,035 vehicles slipped 13.8% year-on-year to 108,583 vehicles.
In light vehicles, cumulative sales of passenger cars slipped from 12.13% year-on-year to 1,587,898 units from 1,813,591 vehicles; and 530,795 units of light commercial vehicles increased by 0.5% from the same period last year to 533,645 units.
Chery's return to fall began to increase in the second half of 2012. Chery’s sales volume in Brazil declined due to changes in dealership rights. In 2013, sales dropped sharply. In 2014, Chery began to recover in Brazil, and its sales have even doubled over the past several months.
As Chery’s local factory in Brazil will start production in July this year and update its model products, local sales will decline in June and July. Since August, it has begun to recover again.
In August, Chery’s local sales were 776 units, an increase of 11.7% from 694 units in August last year, and the market share increased from 0.22% to 0.30%. From January to August overall situation, Chery still achieved a year-on-year increase of up to 48.46%, from 3,931 to 5,836 units, and the market share also increased from 0.17% to 0.28%.
Chery’s locally-manufactured models in Brazil include the Fengyun 2 overseas editions of Celer and QQ, as well as models such as Tiggo. The future of Arrizo 7 is expected to be put into production.